diff --git a/internal/statesync/dispatcher.go b/internal/statesync/dispatcher.go
index e7ad73148..baddcfc29 100644
--- a/internal/statesync/dispatcher.go
+++ b/internal/statesync/dispatcher.go
@@ -47,6 +47,7 @@ func (d *Dispatcher) LightBlock(ctx context.Context, height int64, peer types.No
 	// dispatch the request to the peer
 	callCh, err := d.dispatch(ctx, peer, height)
 	if err != nil {
+
 		return nil, err
 	}
 
@@ -188,12 +189,13 @@ func (p *BlockProvider) LightBlock(ctx context.Context, height int64) (*types.Li
 	switch err {
 	case nil:
 		if lb == nil {
+
 			return nil, provider.ErrLightBlockNotFound
 		}
 	case context.DeadlineExceeded, context.Canceled:
 		return nil, err
 	case errPeerAlreadyBusy:
-		return nil, provider.ErrLightBlockNotFound
+		return nil, err
 	default:
 		return nil, provider.ErrUnreliableProvider{Reason: err}
 	}
diff --git a/internal/statesync/reactor.go b/internal/statesync/reactor.go
index 3a6599689..7319d22fa 100644
--- a/internal/statesync/reactor.go
+++ b/internal/statesync/reactor.go
@@ -279,7 +279,9 @@ func (r *Reactor) OnStart(ctx context.Context) error {
 			"trustHeight", to.Height, "useP2P", r.cfg.UseP2P)
 
 		if r.cfg.UseP2P {
-			if err := r.waitForEnoughPeers(ctx, 2); err != nil {
+		WAIT:
+			failed := 0
+			if err := r.waitForEnoughPeers(ctx, 2+failed); err != nil {
 				return err
 			}
 
@@ -291,8 +293,14 @@ func (r *Reactor) OnStart(ctx context.Context) error {
 
 			stateProvider, err := NewP2PStateProvider(ctx, chainID, initialHeight, providers, to, paramsCh, r.logger.With("module", "stateprovider"))
 			if err != nil {
-				return fmt.Errorf("failed to initialize P2P state provider: %w", err)
+				failed++
+				if len(peers) == 2 && failed == 1 {
+					r.logger.Info("***** attempting to find more peers due to init error")
+					goto WAIT
+				}
+				return fmt.Errorf("failed to initialize P2P state provider: %w %d %s %s", err, r.peers.Len(), providers[0].ID(), providers[1].ID())
 			}
+
 			r.stateProvider = stateProvider
 			return nil
 		}